The banks - SCBs, PCBs and FCBs - have cumulatively achieved 94 per cent of their special agricultural loan disbursement target in the first ten and a half months of the current fiscal year (2011-12).

According to the Bangladesh Bank (BB) statistics, from July 1, 2011 to May 10, 2012 the banks disbursed a total of Tk 731.43 million as special agricultural credit at 4.0 per cent interest, which is 94.22 per cent of their yearly target of Tk 776.30 million.

Of the distributed amount, Tk 11.59 million were disbursed for cultivation of pulses, Tk 55.72 for oil seeds, Tk 578.49 million for spices, and Tk 85.62 million for maize cultivation.

The state-owned commercial banks (SCBs) - Sonali Bank, Janata Bank, Agrani Bank, Rupali Bank, Bangladesh Krishi Bank (BKB) and Rajshahi Krishi Unnayan Bank (RAKUB), private commercial banks (PCBs) and foreign commercial bank (FCBs) gave the loans to the farmers.

According to the BB statistics, Sonali Bank disbursed 110.94 per cent, Janata Bank 108.70 per cent, Agrani Bank 104.63 per cent, and RAKUB 120.30 per cent of their respective targets of Tk 120 million, Tk 130 million, Tk 123.80 million, and Tk 40 million.

Besides, BKB gave 83.38 per cent, Rupali Bank 29.66 per cent, PCBs 75.49 per cent, and FCBs 66.67 per cent of their respective targets. 

The government had earlier re-fixed interest rate at 4.0 per cent from the previous rate of 2.0 per cent on special agricultural credit to be disbursed for cultivation of pulses, oil seeds, spices and maize in the current fiscal.

The government gives a 6.0 per cent interest rate subsidy to the banks, so that they get 10 per cent in total when they disburse loan to farmers at 4.0 per cent rate.

According to the Department of Agricultural Extension (DAE), Bangladesh imports about 50 per cent of its total consumption of spices. The loan is being given to discourage import of the items and reduce annual import payment of nearly Tk 25 billion in this regard.

The farmers are gradually becoming more and more interested in cultivating spicy crops, availing the easy-term credit facility. The BB officials expressed optimism that spice production in the country would increase further following various initiatives of the government. 

Earlier, a substantial amount of money, allocated to be disbursed as special agri-loan, remained idle with the banks, though these special loan programmes were launched about one decade ago. 

Presently, due to various steps taken by the BB, loan is being disbursed at a large scale among the farmers every fiscal, the BB officials added.

 Financial Exxpress/ Bangladesh/ 26-May-2012